CEO of Natus Medical Inc. (BABY) Buys Shares, Plus Other Fresh Notable Insider Transactions

With so many contradictory news and indicators literally bombing financial markets every single day, one may have a hard time pinpointing a reliable forward-looking indicator that can support the security investing process. It can be argued that stock purchases by company executives and Board directors represent reliable forward-looking signals for retail investors. As well-known investment guru Peter Lynch once observed: “Insiders might sell their shares for any number of reasons, but they buy them for only one: They think the price will rise.”

Numerous academic studies support the investment guru’s statement; security purchases completed by executives and Board members tend to beat broader market benchmarks by a wide margin on an annual basis. Furthermore, both insider buying and selling data can be used as a valuable indicator for retail investors to get some insight into how the people running companies really think about the health of their companies. Indeed, insider buying usually serves as a positive indicator, and some people automatically assume insider selling is negative. But investors need to keep in mind that there are a variety of reasons for selling. There may also be reasons for buying shares that go beyond insider bullishness, such as the simple fact that some companies impose stock ownership guidelines requiring management to own a certain amount of shares. Without further ado, let’s have a look at a set of fresh noteworthy insider transactions observed at five publicly traded companies.

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CEO of Medical Equipment Maker Buys Shares After Lowering Revenue Guidance

According to our insider trading database, the insider buying activity at Natus Medical Inc. (NASDAQ:BABY) had been mute since early 2013 until this week. President and Chief Executive Officer James B. Hawkins snapped up 10,000 shares on Wednesday at a price tag of $38.48 each. Following the recent purchase, Mr. Hawkins currently holds an ownership stake comprising 459,725 shares.

The insider buying comes shortly after the provider of newborn care and neurology healthcare products and services lowered its third-quarter revenue guidance to the range of $89 million-to-$91 million from the previous guidance of $97 million-to-$98 million. The highest portion of the anticipated shortfall relates to the company’s decision to stop shipping some products from its Seattle facility whilst the company takes care of deficiencies in engineering and manufacturing quality processes. Falling demand in international markets partly explains Natus Medical Inc. (NASDAQ:BABY)’s lower revenue guidance as well. The medical equipment maker also agreed to acquire the GN Otometrics business – a manufacturer of hearing diagnostics and balance assessment equipment, disposables and software – from GN Store Nord for $145 million in cash. The shares of Natus Medical are 16% in the red thus far in 2016. Steve Cohen’s Point72 Asset Management acquired a new stake of 622,600 shares of Natus Medical Inc. (NASDAQ:BABY) during the second quarter.

The next pages of this insider trading article will reveal other notable insider transactions reported with the SEC on Wednesday.

Board Member at Battered Multi-Channel Retailer Buys Shares on Weakness

One member of Lands’ End Inc. (NASDAQ:LE)’s boardroom piled up some shares earlier this week. Board member Jignesh M. Patel bought 2,500 shares on Wednesday for $15.15 each, lifting his overall holding to 10,000 shares.

The shares of the multi-channel retailer of clothing, accessories and footwear tumbled by 19% in the past five trading sessions following the announcement that Federica Marchionni stepped down from her role as Chief Executive Officer after less than two years on the job. In a statement, the freshly-resigned CEO said that “the Board of Directors and I have agreed it is time for others to bring Land’s End into the future.” Although Lands’ End Inc. (NASDAQ:LE)’s sales had embarked on a downtrend prior to Federica Marchionni becoming CEO, the company’s top line fell for seven consecutive quarters under her leadership. The company posted net revenue of $292.0 million for the three months that ended July 29, down from $312.4 million recorded for the same period of the prior year. Royce & Associates, founded by Chuck Royce, was the owner of 99,000 shares of Lands’ End Inc. (NASDAQ:LE) at the end of June.

Embryonic Cluster of Insider Buying at Maker of Sodas

Shortly after Reed’s Inc. (NYSEMKT:REED)’s Chief Financial Officer, Daniel V. Miles, purchased 8,000 shares on Tuesday, another member of the company’s executive team bought some shares on Wednesday. A cluster of insider buying appears to be emerging at the company. Neal Cohane, Senior Vice President and Marketing, acquired 13,500 shares on Wednesday at $3.78 apiece. After the recent purchase, Mr. Cohane currently owns 173,177 shares.

Although the shares of the maker of natural non-alcoholic carbonated soft drinks are down 28% year-to-date, the stock has gained an impressive 58% in the past three months. Reed’s Inc. (NYSEMKT:REED)’s second-quarter gross sales dropped to $11.84 million from $13.17 million recorded last year. Both Reed’s Ginger Brew and Virgils’ brands were down versus the same period of the previous year. However, Reed’s Ginger Brew and Virgils’ craft soda products gross sales grew sequentially relative to the first quarter by 3.6% and 17.1%, respectively. Jim Simons’ Renaissance Technologies LLC reported ownership of 109,500 shares of Reed’s Inc. (NYSEMKT:REED) in its 13F for the second quarter.

The final page of this article will discuss fresh insider selling observed at two other companies.

Board Member at Diversified Energy Company Offloads Shares

While the insider buying activity at National Fuel Gas Co. (NYSE:NFG) has been mute over the past several years, the volume of insider selling has been rising in the past few months. Board member Philip C. Ackerman discarded 27,838 shares on Monday at prices varying from $55.50 to $56.08 per shares. After the recent sale, Mr. Ackerman currently holds a direct ownership stake of 583,694 shares.

The diversified energy company engaged in the production, gathering, transportation, distribution and marketing of natural gas has seen the value of its shares jump by 32% since the start of the year. National Fuel Gas Co. (NYSE:NFG)’s earnings were $8.3 million for the quarter that ended June 30, as compared to a loss of $293.1 million for the same quarter of the prior year. The increase in the company’s top-line figure mainly reflects a lower loss in its Exploration and Production segment. National Fuel Gas continues to develop its natural gas reserves in the Marcellus Shale, but at a much slower pace than in previous years due to the low commodity price environment. Ken Griffin’s Citadel Advisors LLC owned around 61,000 shares of National Fuel Gas Co. (NYSE:NFG) on June 30.

Executive at Adhesives Provider Discards Shares

One member of HB Fuller Co (NYSE:FUL)’s management team unloaded a relatively sizeable block of shares this week. James R. Giertz liquidated 25,000 shares on Tuesday at prices that fell between $45.57 and $45.95 per share, cutting his ownership to 83,121 shares.

The global adhesives provider has seen its market cap gain 28% since the beginning of the year. HB Fuller Co (NYSE:FUL)’s shares recently took a hit following the release of its financial results for the third quarter that ended August 27. The company reported net revenue of $512.9 million for the quarter, down 2.2% year-on-year to due lower average selling prices and negative foreign currency translation. In early June, the company acquired a provider of industrial adhesives for the electronics, medical, audio equipment, automotive and structural markets, called Cyberbond. The acquisition was aimed at broadening the company’s global position. Jim Simons’ Renaissance Technologies LLC had 156,900 shares of HB Fuller Co (NYSE:FUL) among its holdings at the end of the second quarter.

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